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May 2009
 

The Green Vehicle Guide – A Valuable Tool to Help Sell Cars

 
         
 
Your customers are interested in the “Green Credentials” of the vehicles they buy There is no doubt that the Australian community’s interest in “green” cars that use less petrol and emit less pollution is increasing.
www.greenvehicleguide.gov.au
 
     
 
 
 
Your customers are interested in the “Green Credentials” of the vehicles they buy
There is no doubt that the Australian community’s interest in “green” cars that use less petrol and emit less pollution is increasing. This is for two important reasons; firstly with the combined factors of increasing petrol costs and a looming difficult economic period, people are looking to save money where possible, so cars with cheaper running costs are favoured. The trend in Australia has been very clear, customers are buying smaller cars at a higher rate (people movers and SUVs are not selling well) and a section of customers has started buying hybrid vehicles. In 2007, 44% of people surveyed by the Department of Environment and Climate Change (DECC) reported that they were “often reducing (their) fuel consumption”. 47% of these people were doing so due to petrol prices (Source: DECC Report “Who Cares About the Environment 2006-2007”). Vehicle manufacturers are also making vehicles with smarter engine technology and more efficient use of petrol because they know that that is what the community wants and this is the direction that vehicle technology is heading.

 

Secondly, the community is also concerned about the environment. We put a high value on the air we breathe being clean and cars that have plumes coming out of their exhaust are no longer seem as the norm, but instead are frowned upon. In the DECC’s “Who Cares About the Environment Report”, people were asked about the most important issues they thought the NSW State Government should be dealing with. Environmental issues, climate change, water supply and energy reduction were all in list of the top eleven concerns. Notably, the younger generations were more likely to cite environmental matters, demonstrating that the next generation of car buyers will likely be more concerned with a vehicle’s fuel consumption and emissions compared with buyers from other generations. Therefore, Dealerships need to be equipped and ready to assist these customers. A tool that will enable Dealerships to do this is the Green Vehicle Guide website.

 

 
 
What the website contains
The Federal Government has introduced the Green Vehicle Guide website, which gives a star rating to new vehicle models from one to five stars. The vehicle models with the best environmental performance are awarded five stars.
    The website’s database contains vehicles manufactured since 2004 and includes 47 brands. Vehicles can be searched for easily using drop-down boxes and more than one vehicle can be entered at a time, allowing “green” comparisons to be made between various models.

    The Green Vehicle Guide’s star rating is equally based on greenhouse and air pollution:


  • Greenhouse Rating
    Using information from the vehicle’s fuel consumption label (litres consumed per 100 kilometres), the greenhouse rating is based on the average greenhouse gas emissions from a car. This information is sourced from the fuel consumption label, which is a label that is compulsory for all new vehicles being sold.

    Air Pollution Rating
    This measure takes in the pollutants in car exhaust fumes. Car fumes contain substances such as carbon monoxide, hyrdrocarbons and oxides of nitrogen. These sorts of contaminants can trigger health problems. Depending on the level of emission standards the vehicle reaches, the vehicle will be given an air pollution rating.
    The scores from these two determinants are combined to reach a number out of 20. This number then places the vehicle in a star category, ranging from one to five, with five as the best performing environmentally.

It is important to note that the Green Vehicle Guide only looks at these factors to determine the star rating of a vehicle. There are other environmental factors that are not taken into account, such as the materials that the vehicle is manufactured from and the emissions produced to make the vehicle. The Federal Government has determined that these factors are too difficult to quantify and are therefore not included.

 

 

How the Green Vehicle Guide can be a tool for Dealerships
The Green Vehicle Guide is quick, accessible and easy. Its star rating system gives both sales people and customers a “universal language” that is understood by both parties. You don’t need to be an environmental expert, you just need to know the star rating for the vehicle you are talking about. If a vehicle has three or more stars, it is a selling point of the vehicle that your potential customers need to be aware of. If the vehicle has four or five stars, then it becomes an even more crucial factor. Customers are interested (albeit to varying degrees) in the ongoing running costs and environmental impacts of the vehicle they are buying, so make sure you let them know when telling them about the vehicle they are interested in.

Simple steps to advertise your high performing vehicles

  • Educate the Sales Department
    Make sure everyone that talks to customers is aware of the Green Vehicle Guide, including how to use it and its basic functions. More importantly however, ensure that the Sales Department knows which vehicles in the yard are the top rating ones. As the Green Vehicle Guide is an unbiased information source, it is very helpful when talking to customers.

    Communicate to Customers
    As well as the Sales Department communicating the environmental performance of certain vehicles verbally, why not do something visual so that browsing customers are made aware of a vehicle’s good star rating when looking at it in your showroom or yard? This could be having green star stickers that are stuck onto car windows (as long as it is clear what they are for) or the information added to the car’s specifications. In addition, you can obtain a free poster and some bumper stickers by requesting them on the Green Vehicle Guide website, which could be placed in your waiting area or reception.
 
 
The environmental performance of a vehicle can be a major selling point, as customers are concerned about running costs and emissions.
Make sure that you are ready to show interested customers the best environmental performers as advised by the Green Vehicle Guide.

It’s a great simple tool that can be used by Dealerships to easily communicate a vehicle’s achievements.


 
 
Sophie Luttrell
Motor Traders' Association of NSW

phone: 02 9213 4231
fax:
02 9212 6889
email:
sophie.luttrell@mtansw.com.au

The MTA is running the Green Stamp Plus program in New South Wales and the Australian Capital Territory as a joint initiative with the Australian Government Department of Environment, Water, Heritage and the Arts. For more information please visit www.greenstamp.mtansw.com.au or call MTA on 02 9213 4222.

 

 

     
 
 
 
     
         
 

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